• To qualify as a first time home buyer as defined in the
program, the purchaser may not have owned a home in the three
years prior to the purchase date of the home. Single family
homes qualify for the program and the home must be your primary
residence.
• To be eligible for the full tax credit, the home buyer’s
adjusted gross income can not be more than $75,000 filing single
/ $150,000 joint. A home buyer with income level of that and up
to $95,000 filing single / $170,000 joint is eligible for a
reduced tax credit.
• The amount of the credit is the lesser of 10% of the purchase
price or $8,000.00.
• No portion of the $8,000.00 will need to be repaid upon the
sale of the home if the is owned for more than 3 years.
• The tax credit can be claimed on one’s individual or joint tax
return between January 1, 2009 and December 1, 2009. It can be
claimed on an amended 2008 tax return, or a 2009 tax return. You
should consult a professional tax advisor for exact tax
calculations and advice.
I hope this sheds some light on this First Time Home Buyer Tax Credit. After reading this I think it’s safe to say that in today’s real estate market if you are a first time home buyer and have the means necessary to buy a home you will not find a better time than the present to do so.
